Hanover, Germany-based TUI Group has seen a negative financial impact by the global Boeing 737 MAX grounding as well as delayed bookings for the 2019 third quarter (April-June).

The group’s 3Q net profit declined 68% to €47.3 million ($53.8 million) year-over-year (YOY). EBITA declined 46% to €100.9 million from €186.8 million, because of the €144 million impact as a result of the March MAX grounding.

TUI Group’s turnover rose 3.7% to €4.75 billion YOY.

The group’s five airlines operate a 150-strong fleet, which includes 23 MAXs, with four for TUI fly Germany.

TUI CEO Fritz Joussen said, “Despite the challenging environment in 2019 to date, our underlying business remains robust, and we expect to deliver a solid performance in 2019, which, however, will not match the prior year’s result, as expected due to the grounding of the 737 MAX.”

TUI has launched a number of measures, including securing replacement aircraft for the grounded MAXs through the end of the summer season.

The grounding has been costly: the TUI Group expects one-off impact of €300 million in the full financial year 2019, which ends Sept. 30.

The group restated its full-year 2019 guidance. As announced March 29, underlying EBITA is projected to be 26% below 2018 levels.

TUI Aviation has 72 MAXs on order plus 48 options. TUI fly Germany plans to operate 25 MAXs to replace its current 737-800 fleet.

In 2018, TUI fly Germany transported 7.9 million passengers; all TUI airlines together carried 27 million passengers.

Kurt Hofmann, hofmann.aviation@netway.at